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Capital Allocators – Inside the Institutional Investment Industry

Sep 12, 2022

Greg Lippmann is the co-founder and Chief Investment Officer of LibreMax, an $8 billion asset management firm specializing in structured products. Greg co-founded LibreMax in 2010 after a long tenure at Deutsche Bank focused on the space. He was one of the originators and the literal epicenter of the subprime mortgage short position during the financial crisis. Michael Lewis featured Greg in The Big Short and Ryan Gosling played him in the movie based on the book.

Our conversation covers Greg’s background, story of the subprime short, structured product market, and launching LibreMax. We discuss his investment strategy, research process, portfolio construction, trading, competitive landscape, and market outlook. We close with Greg’s experience being portrayed by a Hollywood star on the big screen.

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Show Notes
(4:17) Greg’s background 
(10:14) Subprime mortgage short 
(17:22) From the trade desk to the silver screen 
(20:20) Transition to structured credit markets 
(22:45) Forming LibreMax Capital 
(25:09) Initial investment strategy 
(28:25) Portfolio management process 
(31:45) Underwriting process for illiquid collateral 
(34:12) Portfolio construction 
(38:15) Team structure 
(41:27) Current market risks 
(48:17) Experience of movie portrayal  
(49:41) Closing questions